A S India moves towards the next General Elections, in 2024, and most likely towards the third term of the Modi Government, one cannot help but reflect how the country has grown and expanded under the present leadership. Halfway into its second term, in 2020 the Government got engulfed in what was a catastrophic calamity of unimaginable proportions to ever hit mankind.
Lasting for well over two years, the Covid-19 pandemic badly hit the world economy, especially that of China, from where the virus originated, and locked down activity. Between April and June this year, China’s GDP was lower than expected at 6.3 per cent.
India, on the other hand, bucked the global trend. In 2024, the Indian economy is expected to grow at 6.7 per cent. According to a United Nations report, titled ‘World Economic Situation and Prospects by Mid-2023’, the Indian economy will maintain resilience on the back of domestic demand.
Hamid Rashid, head of Global Economic Monitoring Branch at United Nations’ Department of Economic and Social Affairs, says that India remains a ‘bright spot’ in the world economy. The International Monetary Fund has also predicted that India’s growth rate will be 6.8 pc in 2023-24 and that it will become the world’s fastestgrowing major economy. There are many positives about India, including a significant decline in inflation in the past few years.
As the world recovers from the pandemic, India has maintained the momentum of domestic growth and its presidency of G20 this year has come at an opportune time. The boost to infrastructure development and tourism and hospitality industry because of this important global event has given a huge spurt to economic activity in the country.
Also, certain provisions in this year’s Union Budget, such as the cut in direct and indirect taxes, which led to a loss of crores of rupees in tax revenue for the Government, actually increased the spending power of common man. The Pradhan Mantri Jan Dhan Yojana, the Pradhan Mantri Kisan Samman Nidhi, and the proposed 11 pc increase in agricultural loans, all have had a positive impact on demand in the domestic market.
India became the world’s most populous country in January, overtaking China. Unlike the narrative in the past, huge population is India’s glory and its pride. It is India which is going to serve the markets of the world through its young and skilled manpower. With more than 52 pc population below the age of 30 years, India has opened the doors of a strong labour market to the world. There is greater emphasis on upskilling and reskilling of existing labour force.
The Pradhan Mantri Kaushal Vikas Yojana is now preparing a skilled and capable workforce for the world. New-age areas like Artificial Intelligence, Robotics, Additive Manufacturing, 3D Printing, Blockchain and Mechatronics have been included in the skilling mission to help the country deal with the challenges of unemployment being faced by almost every country around the world.
India has set itself a target of becoming the third-largest economy, and for this, the unemployment rate will have to be reduced very quickly as the income of the youth will also increase consumption and savings, helping India achieve the declared goal of becoming a $10-trillion economy.
